DLF share price rises over 4% after CLSA upgrades stock to buy

The DLF share price rose in trade today after brokerage CLSA upgraded the share to buy from its sell rating. DLF share price rose 4.14% to 194.90 compared to the previous close of 187.15 on BSE. DLF share price has lost 12.68% during the last one year and gained 9.80% since the beginning of this year.

DLF share price has been rising for the last three days and gained 9.05% during the period. DLF clocked turnover of Rs 15.52 crore with 8.06 lakh shares chaining hands on BSE.

7 of 15 brokerages rate the stock "buy" or 'outperform', four "hold" , two "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.

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The DLF share price was trading above its 50-day and 200 day moving average of 166.93 and 175.24 levels.

International brokerage CLSA raised the target price for DLF to Rs 229 from Rs 167 saying that cashflow turn should be sustainable.

CLSA said DLF's rental business is set to deliver double-digit compounding in the long term and its development business will stay as high value. The real estate company has done well to deliver on project commitments, the brokerage said.

DLF reported a 92% decline in net profit in Q3 of the current fiscal as the firm had posted an exceptional profit in the year-ago period from stake sale in rental arm to GIC. Its net profit stood at Rs 4,091.27 crore in the year-ago period.

However, total income rose to Rs 2,405.89 crore during October-December quarter of 2018-19 fiscal year from Rs 1,855.21 crore in the corresponding period of the previous year.

The profit fell due to exceptional gain of Rs 8,569.34 crore during the third quarter of 2017-18 fiscal, mainly on the back of promoters stake sale in rental arm DLF Cyber City Developers. Promoters had infused funds into DLF to reduce debt.

Operating profit (excluding other income) fell to Rs 639.91 crore in Q3 compared to Rs 701.29 crore for the quarter ended December 2017.     

Earnings per share fell to Rs 1.88 in Q3 of the current fiscal compared to Rs 22.93 in the corresponding quarter of the previous year.

Its profit after tax margin shrinked to 5.01% for the quarter ended December 2018 compared to 242.66% in the corresponding quarter of the previous fiscal.

DLF is primarily engaged in the business of real estate development. The company is engaged in development business focuses on the development and sale of residential real estate, which include plotted developments, houses, villas and apartments of varying sizes and integrated townships, with a focus on the luxury residential developments.

The company's operations span various aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction and marketing of projects.

Edited by Aseem Thapliyal